Reference no: EM132650638
Laurel Wilson has a portfolio of five stocks. The stocks' actual investment performance last year is given below along with an estimate of this year's performance.
Last Year This Year
Stock Investment Return Investment Return
A $50,000 8.0% $55,000 8.5%
B $40,000 6.0% $40,000 7.0%
C $80,000 4.0% $60,000 4.5%
D $20,000 12.0% $45,000 9.0%
E $60,000 3.0% $50,000 5.0%
Problem 1: Compute the actual return on Laurel's overall portfolio last year and its expected return this year.